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Recordkeeping Requirements, How long should you keep tax records?

By: Yolanda Trimble Tax Planning Views: 1961 | Comments: 0 | Votes: 0

Suggested Holding Periods for Tax Records:1. It is a good policy to save copies of your 1040 and supporting schedules indefinitely.2. The IRS requires record retention as long as they are important for Federal Tax law. Keep ALL--bank statements, checks, receipts and other financial records for at least three years, especially those documents that will support your tax return figures.4. More

Telephone Tax Refund

By: Peter Suhai Tax Planning Views: 2283 | Comments: 0 | Votes: 0

It is available to anyone who paid such taxes on landline, wireless, or Voice over Internet Protocol (VoIP) service.Why is the government refunding these taxes?Several recent federal court decisions have held that the tax does not apply to long-distance service as it is billed today. 28, 2003 and before Aug. 1, 2006. 28, 2003 and before Aug. It is also the easiest way to get a refund. More

What Do I Do with my Tax Refund?

By: Jill Cooper Tax Planning Views: 2212 | Comments: 0 | Votes: 0

It's that time of year when all that "free" money starts rolling in. I'm talking about the bonus money, you know -- the fun money (otherwise known as our tax refund)! We are going to do so much with it and it seems to have such amazing powers. I mean a $1000 tax return can buy a car, furniture, big screen TV, or a family vacation all in one fell swoop. It is not mad money. More

Alternative Fuel Vehicle Credit

By: Yolanda Trimble Tax Planning Views: 2205 | Comments: 3 | Votes: 0

The Energy Policy Act of 2005 replaced the clean-fuel burning deduction with a tax credit. A tax credit is subtracted directly from the total amount of federal tax owed, thus reducing or even eliminating the taxpayer’s tax obligation. The tax credit for hybrid vehicles applies to vehicles purchased or placed in service on or after January 1, 2006. More

Turn Personal Expenses Into Business Deductions

By: Thomas Norton, CPA Tax Planning Views: 2618 | Comments: 0 | Votes: 0

Most small business owners have heard that they're supposed to get special tax breaks. The problem is, they don't know what they are or how to go about claiming them. Not surprisingly, the IRS doesn't go out of its way to spell it out for you when you go to file your income taxes! There is a general rule in tax law that says all "ordinary and necessary" business expenses are deductible. More

Age limit for "kiddie tax" to go up again

By: Steven Leibold, EA Tax Planning Views: 16685 | Comments: 0 | Votes: 0

Do your children have savings accounts or other investments held in their own name? If so, the tax on those investments could change. That's because recent tax legislation will expand the "kiddie tax" to cover children up to age 19 starting in 2008. For full-time students, the age limit will be even higher - up to age 24. Prior to 2006, the kiddie tax applied up to age 14. Steven C. More

Qualified moving expenses

By: Robert W. Ditmer Tax Planning Views: 3189 | Comments: 1 | Votes: 0

In the case of some fringe benefits that are offered to or given to employees, certain benefits can be excluded from an employee's income because the expenses would normally be deductible on an individual's personal income tax return. A moving or relocation expense is one such benefit. What moving expenses are deductible? How should moving expenses be reported? Robert W. More

Tax benefits of owning a home

By: Bogie Boric Tax Planning Views: 7747 | Comments: 0 | Votes: 0

Deducting mortgage interestIn most cases, you can fully deduct your mortgage interest secured by your primary or secondary home. Beginning in 1987, mortgage interest to buy, build, or improve your home (acquisition debt) up to $1,000,000 or home equity loans up to $100,000 became tax deductible. You can only claim this exemption once every two years. More

How long to keep financial records

By: Julian Block Tax Planning Views: 2204 | Comments: 0 | Votes: 0

You need no reminder to hold on to your tax records in case your returns are questioned by the Internal Revenue Service. But just how long do you need to save those old records that clutter up your closets and desk drawers? Unfortunately, there is no flat cutoff and the time limits go all over the lot. But wait! The audit, admonishes the IRS, can begin "at any time." More

Phone bill tax refund

By: Lew Sichelman Tax Planning Views: 3227 | Comments: 0 | Votes: 0

Taxpayers are due a onetime federal excise tax refund credit of $30 to $60 – or possibly even more – on their 2006 federal returns, according to the Internal Revenue Service. The refund is intended to compensate people who have been charged an excise tax on their phone bills. But when they went to flat-fee phone services, they continued to levy the tax. More